The city of Cape town will lease Cape town stadium to the R100 a year municipal body set up to operate and manage the site.

City of Mayco member for economic opportunity and asset management James Vos says it makes no sense to charge a market amount.

This, he said, is because the municipality is subsidized by the city.

EDUCATION: Why city plans to lease Cape town Stadium for R100

The city of Cape town subsidizes the stadium. Thus, if market rents are charged, the municipality will use the proceeds of the subsidy to pay market rents back to the city.

It does not make sense to charge market-related rent if it is paid.

A nominal rent of R100 per year was used.

As the stadium company, which is a municipal entity, becomes less dependent on the city subsidy, there are rental opportunities to approach the market rent.

Listen to the explanation for today with the kammies Movie: